Sustainable Action Leadership

Wal-Mart's Lee Scott outlines global collaborative sustainability plans

On October 24, 2005, I was invited to the Wal-Mart auditorium to hear Wal-Mart CEO, Lee Scott deliver a speech that would make me proud to have been a part of the global change that was about to be revealed to the world. The world would reel in surprise, as they heard Wal-Mart had launched some meaningful and aggressive environmental goals. The pivotal landmark  speech "Twenty First Century Leadership" was broadcast live to Wal-Mart associates all over the  globe that day.

Now Twenty-Seven months later; another pivotal speech by Wal-Mart CEO, Lee Scott
“The Company of the Future” has given us new hope for saving money on energy efficient products, but has also raised more than few eyebrows in the retail community, nonetheless this speech still makes me proud. Potentially looking at selling Hybrid and or EV’s (Electric vehicles) and putting energy ‘back’ into the grid, reducing energy costs for the world, is no doubt great innovative thinking.

Here are three merchandising goals as outline in the speech;

"Our first action will apply to all suppliers who work with us through global procurement, who are domestic importers, or who are manufacturers of Sam’s Club or Wal-Mart private brands.  We will require these suppliers to demonstrate that their factories meet specific environmental, social and quality standards.  We have already started doing this, and we hope to extend the requirement to all the suppliers I mentioned within the next three to five years.

Second, we will only work with suppliers who maintain our standards throughout our relationship.  So we will make certification and compliance part of our supplier agreements and ask suppliers to report to us regularly.  Any supplier that fails to keep its word will be required to take prompt and serious action.  If a supplier fails to improve and fix the problem, we will stop working with that supplier.

Third, we will favor -- and in some cases even pay more -- for suppliers that meet our standards and share our commitment to quality and sustainability.  Paying more in the short term for quality will mean paying less in the long term as a company.  Higher quality products will mean better value, fewer problems, fewer returns and greater trust with our customers.  Saving people money is a commitment to our customers throughout the life of the product.

While we do these things, we will also work on more far reaching change. Many of our supplier factories have multiple customers, including multinational corporations and local retailers.  Each retailer often imposes different standards and requires separate inspections.  This often results in duplication of efforts without a real improvement in performance.  And in some cases, it allows a competitor to have lower standards and, at times, lower costs. 

In the next three years, we would like to build a very different system. We believe that there should be one framework of social and environmental standards for all major global retailers.  And there should be one third party auditing system for everyone.  This will ensure improvement can occur across the board on a level playing field. “

Clearly much needed leadership in the world of retail.

SHOP TO SAVE THE WORLD?

While I acknowledge the great work that Wal-Mart is doing and plans to do for our world. I am still wondering about this part of the speech; “Our goal is to double the sale of products that help make homes more energy efficient."

Again a noble plan, I hope that doubling sales on energy efficient products is pre-empted by the fact that consumers should be replacing the old products when they need to (the consumption factor) not rushing out to buy a new hair dryer, when the old hair dryer still works fine.

Or how about when all those millions of customers go to Wal-Mart to buy their new energy efficient products, give them an option for disposal of their current product? Have them bring in the old product and Wal-Mart can donate it to a charitable organization or recycling it e.g. downcycling it or upcycling it to another product?

Otherwise where will all those household products; hair dryers, microwaves and all that old weather stripping end up?

In which landfill?

Which, by the way Wal-Mart...... where did the 145 million old-conventional lightbulbs end up, when everyone ran out to buy the CFLs? 

I bet the majority ended up in landfills---I personally donated mine to organizations just happy to have a light bulb!!!

Sustainability is indeed a journey...............................

 

Eight apparel industry issues to watch in 2008

18 January 2008 | Source: just-style.com

 

   

Are new EU curbs likely on Chinese apparel imports? Will Vietnam import monitoring lead to anti-dumping duties? And what will happen when US safeguards expire at the end of 2008? These are just three of the industry issues highlighted in just-style's round-up of the international apparel trade agenda in 2008.

There will continue to be an element of uncertainty around apparel sourcing in 2008 - particularly from China.

1.) EU curbs on Chinese apparel imports?
The EU and China have agreed to jointly monitor Chinese textile and clothing shipments to the EU until the end of 2008 in an attempt to provide a clear picture of trade patterns and alert the industry to any sudden surges in shipments.

2.) Vietnam import monitoring
Import monitoring has already been used successfully to control the growth of apparel shipments between the US and Vietnam over the past 12 months, and is likely to do so for at least another year since it is scheduled to remain in place until 19 January 2009.

3.) The expiry of US safeguards
Restrictions on imports of all or parts of 34 customs categories of Chinese textile and apparel products into the US expire on 31 December 2008. And the big question for US firms importing apparel from China is what will happen from 1 January 2009.

The problem isn't whether the current safeguard  quotas will be abolished, since there's no legal way of retaining them after 2008.

4.) Countervailing duty investigations
Textile and apparel issues could also get wrapped up in wider trade disputes with China during the course of the year. 

In particular, China is going to be a target for action to try to force currency revaluation and the elimination of subsidies - which could prompt the US to take a tougher line against imports from China in the form of higher taxes, or countervailing tariffs, for products whose import prices are kept artificially low.

5.) Product safety concerns
As well as concerns over Chinese quotas, currency and subsidies, worries about Chinese product safety standards are likely to have far-reaching implications for clothing retailers and importers in 2008 and beyond.

At the moment there are few regulatory standards for imported clothing or textiles. But this could soon change.

The Interagency Working Group on Import Safety in the US has issued recommendations to improve the safety of imported food and consumer products.

And two new pieces of legislation - the CPSC (Consumer Product Safety Commission) Reform Act of 2007, and the Safety Assurance for Every (SAFE) Consumer Product Act of 2007 - are currently being considered.

6.) The living wage debate
As well as product safety scares, 2007 also saw a spate of well-publicised scandals suggesting many top fashion brands are using suppliers who do not pay their employees enough.

The allegations ignited calls for fashion retailers and brands to ensure that workers making their clothes in overseas factories are paid a living wage - a debate that is likely to hot up even more in 2008.

Fears of a consumer backlash are most likely to force companies to shape up. But what exactly is a living wage, who is going to pay for the extra costs incurred, and are retailers doing enough to question their need for high gross margins?

7.) Environmental concerns
As fears over global warming reached fever pitch last year, a slew of retailers - led by Wal-Mart and Marks_&_Spencer (M&S) - announced new and expanded plans to cut down on waste in their supply chains, use more organic and Fairtrade cotton, and run stores more efficiently.

But what will be the effect of such initiatives on these companies and their suppliers over the coming year?

Some retailers are already asking key suppliers to measure - and reduce - their carbon footprint. But will the results be used in purchasing decisions? And will those that don't measure up get the chop?

Just as important is how carbon footprint will actually be calculated and measured over product's life from manufacture to disposal - not only the crop growing, the production, manufacturing and transportation of new clothes, but also in washing and drying of a garment.

8.) Rising input costs
Clothing suppliers are currently being hit by rises in input costs at a level not seen for over a decade. And it's not unreasonable to assume that higher production, export, transportation, material, labour, and living costs will eventually work through to clothing prices too.

Some of the problems have been most acute in China, a country that is likely to lose its competitive edge even further when a new Chinese labour law comes into force on 1 January 2008.However, India, Turkey, the Philippines and Vietnam have also held rising labour costs responsible for the reduced competitiveness of their textile and clothing industries.

By Leonie Barrie.

 

Innovative ideas; M&S Launches Apparel Recycling

UK: M&S launches clothes recycling scheme with Oxfam

15 January 2008 | Source: just-style.com

 

UK consumers are to be encouraged to recycle their clothes under a new programme launched by retailer Marks_&_Spencer and charity Oxfam.

The project, described by Marks & Spencer as the biggest of its kind in the country, was launched on the first anniversary of the retailer's Plan A environmental and social strategy.

Under the M&S and Oxfam Clothes Exchange, customers who donate M&S clothes to Oxfam will receive a voucher worth GBP5 (US$9.84), valid for one month and redeemable against their next purchase of GBP35 or more on clothing, homeware or beauty products.

However, the scheme will not cover donations of intimate apparel, swimwear, hosiery and socks. Marks & Spencer said this was because of concerns over the handling of such items and the fact that Oxfam does not sell them.

Only one voucher will be given per donation, and only one voucher can be used per purchase at Marks & Spencer. Vouchers will not be accepted for food purchases.

Starting on 28 January, the programme will initially operate for a six-month trial period, with ongoing reviews.

A Marks & Spencer spokesperson told just-style that Oxfam's status as the UK's biggest charity shop was a major factor in the launch of the programme.

"We wouldn't ever want to try to do a job for which we weren't equipped," she said. "Oxfam has a great track record for tackling poverty around the world, as well as being able to recycle and resell clothes, and also having a solution for items they can't sell."

These items will be sold off in bulk to recycling traders.

Marks & Spencer chief executive Sir Stuart Rose said the scheme would aid Oxfam's work in tackling poverty and injustice, particularly in the developing world.

"It's a triple win - it's good for customers, good for people in developing countries and good for the environment," he added.

Oxfam director Barbara Stocking said: "Recycling and reusing clothes - and anything else we can sell - has always been central to Oxfarm's fundraising, as well as being good for the environment.

"Through our unique textile sorting facility and the resourcefulness and skills of our specialist staff, Oxfam is able to make the most from all the clothes we receive.

"People's unwanted clothes really will raise much-needed money to help people living in poverty."

 

Supply Chain Transparency

Supply chain transparency is key to sustainable fiber strategic planning.

“What is the source of my raw materials” will become the mantra for the 21^st Century designer.

Lenzings Modal fiber is one of my favorite sustainable fibers, so I decided to go see for myself exactly what this processed natural fiber was all about.

Last week I toured the Lenzing Modal facility in Lenzing, Austria. Situated near Lake Attersee, the view is something reminiscent of “The Sound of Music” which by the way was filmed just a few miles away.

I was impressed by the management and certification of the raw material source; beechwood trees to the accountability and transparency of all the energy and environmental inputs and outputs. Xlylitol is a by product of the Modal closed loop process, and an ingredient in my favorite gum, Spry. Lenzing understands what it is to  create a closed loop system and generate  economic value from your  waste  stream.

Lenzing is truly a fiber company of the 21^st Century.

Cotton from Uzbekistan--banned by Tesco in UK

17 January 2008 | Source: just-style.com

Britain's biggest retailer  TESCO is to boycott the use of cotton from Uzbekistan in all of its clothing and textile products following allegations by campaign groups that child labour is used in harvesting the fibre.

In a letter to suppliers, Terry Green, CEO of Tesco Clothing, said: "The use of organised and forced child labour is completely unacceptable and leads us to conclude that whilst these practices persist in Uzbekistan then we cannot support the use of cotton from Uzbekistan in our textiles."

The supermarket chain is also calling on its suppliers to improve supply chain transparency by tracing the source of raw cotton used in all Tesco textile products from autumn/winter 08.

"We understand that cotton is an internationally traded commodity and that raw cotton sources are not always easily identifiable," Green said.

But he added that the retailer intends to "randomly audit records to monitor the source of raw cotton." If it is not possible to identify where the cotton has been grown, suppliers must alert the company before production begins.

A Tesco spokesperson was unable to tell just-style how much of the cotton used in its clothing and textile lines was sourced from Uzbekistan "because it's an internationally traded commodity and so lots of cotton from different sources gets mixed up."

But he added: "What we're doing now is that we've got a tracking system in place that will make sure our suppliers are aware of where they're sourcing their cotton from, and from that they'll be able to establish that it's not being sourced from Uzbekistan."

The Tesco ban comes after research carried out by The Environmental Justice Foundation (EJF) found that Uzbek cotton production uses state-sponsored child labour.

In its report 'White Gold: the true cost of cotton', the EJF claims that up to one-third of the Uzbek workforce is required to labour in the annual cotton harvest for very low wages.

This includes tens of thousands of children who are withdrawn from school to pick the cotton that funds President Karimov's government.

Uzbekistan is one of the world's biggest producers of cotton, with annual export revenues of around GBP500m (US$988m). Europe is a major buyer of Uzbek cotton.

Steve Trent, executive director of EJF applauds Tesco's decision and adds: "Tesco has proven that the sourcing of cotton fibre and the tracking of supply chains are entirely possible and there is no excuse for all other retailers of cotton goods not to pledge a commitment to do the same."

Sustainable Fibers

With the current eco-opportunistic GREEN rush to market by fabric suppliers, it is not surprising that recently retailer Lululemon Athletica made headlines about the validity/credibility of a new so-called eco/sustainable fabric.

This is NOT business as usual, nor is this a trend, this is an entirely new  business model, one where you need to know your supply chain clear back to the farm or fiber production facility, where does your fiber come from? What is the country of origin???? that is just for starters.

Since the market currently lacks standards and third party certification of sustainable/eco-fibers, the fabric market has become the “Wild West”….where anything goes…..the only problem is there is something called….”Truth in Labeling.”

I urge participants of my Eco-Textiles Workshops to consult the FTC guidelines for clarity, bottom line....
Your label claims CANNOT be deceptive.

The terms “eco, green, sustainable and organic” are being used openly and interchangeably in the market with the term ‘certified organic.’

To be sold in the US as certified organic, all fiber must be certified organic in accordance with the USDA NOP program (or) for Europe the EU organic certifications EU 2092/91.

Of enormous concern, much more than Lululemons “Sea Cell”... is what people are touting as “Bamboo” I  was concerned as I shopped in  L.A. recently, at the number of  garments on shelves that contained  fiber  declarations of "Bamboo?"  

Read on………………………

Viscose or Rayon from Bamboo    

Bamboo is not, in and of itself, recognized as a fiber in the US or EU.  What is referred to as bamboo fiber in the market is actually viscose/rayon.

All viscose or rayon fiber from Bamboo (as a source) that is imported into the US must carry a legal fiber content label declaration of viscose or rayon. All bamboo imported into the EU must use of the legal content declaration viscose; the EU does not permit the use of the word rayon.

As one of the fastest growing plants in the world, bamboo grows to its maximum height in about 3 months and reaches maturity in 3-4 years.  Because of relatively quick growing time and the ability to be grown without fertilizers or pesticides, the fiber is currently being marketed as an ‘eco-green-sustainable fiber.’

There are also claims that viscose or rayon from bamboo is biodegradable and anti-microbial. Here is the definition of antimicrobal; "Capable of destroying or inhibiting the growth of microorganisms" 

Currently there is a lack of transparency in the supply chain. It is not always clear which type of bamboo is used for fiber, where it is grown, how it is cultivated, harvested etc. To date there are no known organic certification of bamboo.

The process to make viscose or rayon fiber from bamboo is the same process used to produce viscose/ rayon from any other plant source. This process can be very polluting unless it is carefully controlled, which can be influenced by the age and condition of the equipment as well as whether there is any by-product recycling or effluent treatment.

Tencel® Lyocell 

There is only one case of manufacturing a regenerated cellulose fiber-where the chemicals used in the process are completely recycled (closed loop) with a recovery rate of 99.5%. Lenzings TENCEL ® Lyocell, is a solvent spun fiber in which the cellulose is directly dissolved keeping the cellulose much closer to that found in nature. TENCEL® Lyocell,  also carries the Oeko Tex 100 certification and FSC certification Currently organic standards are not in place for certifying regenerated fibers using trees as a source e.g. Eucalyptus, or Beechwood.  FSC certification for TENCEL® Lyocell is for the forest and for the pulp, they also have been awarded the European-Eco flower label.

Do we really need more Stuff? The Consumption Factor

"The average rates at which people consume resources like oil and metals, and produce wastes like plastics and greenhouse gases, are about 32 times higher in North America, Western Europe, Japan and Australia than they are in the developing world. That factor of 32 has big consequences.

To understand them, consider our concern with world population. Today, there are more than 6.5 billion people, and that number may grow to around 9 billion within this half-century. Several decades ago, many people considered rising population to be the main challenge facing humanity. Now we realize that it matters only insofar as people consume and produce."

"Among the developing countries that are seeking to increase per capita consumption rates at home, China stands out. It has the world’s fastest growing economy, and there are 1.3 billion Chinese, four times the United States population. The world is already running out of resources, and it will do so even sooner if China achieves American-level consumption rates. Already, China is competing with us for oil and metals on world markets."

"If India as well as China were to catch up, world consumption rates would triple. If the whole developing world were suddenly to catch up, world rates would increase elevenfold. It would be as if the world population ballooned to 72 billion people (retaining present consumption rates).

Some optimists claim that we could support a world with nine billion people. But I haven’t met anyone crazy enough to claim that we could support 72 billion."
"The world has serious consumption problems, but we can solve them if we choose to do so."

For full article see "What's Your Consumption Factor?"
Jared Diamond, New York Times 1/2/08.